B. Interactions Between Layers: Segmentative, Parallel, Non-Hierarchical
The prevailing assumption in many economic development models is that informal or traditional sectors will, over time, "graduate" into more formalized or digital layers---a linear and hierarchical progression. However, empirical realities in Indonesia challenge this model. The 4-Layer Asymmetric Economy Model posits that these layers interact in non-hierarchical, parallel, and segmentative ways.
1. Non-Linear Progression
The four layers do not represent a linear staircase of development from "primitive" to "advanced." Many actors in Layer 1 (traditional economy) remain productive and profitable without ever transitioning to Layer 2 (industrial economy) or Layer 3 (digital platforms). Similarly, actors in Layer 2 may not adopt Layer 4 (AI-based systems) due to high complexity or misalignment with operational needs.
This calls into question development narratives that implicitly regard digitization or formalization as the sole trajectory of progress.
2. Segmentative Structure
Each layer is characterized by a self-sustaining internal logic---regarding labor organization, transactional tools, technological interface, and market relations. These logics do not necessarily intersect or flow naturally into one another. For example:
A small family-run food stall (Layer 1) may continue to thrive in a cash economy despite proximity to Layer 3's cashless customers.
A small factory (Layer 2) may operate with a formal structure but rely entirely on Layer 1's informal logistics and sales agents.
This segmentative reality creates friction and asymmetry in economic policymaking, as efforts to scale up or integrate sectors may overlook the incommensurability of their underlying systems.
3. Parallel and Selective Interaction
While layers can and do interact, the connections are often selective, conditional, and asymmetric. For example:
A Layer 3 merchant selling on Shopee might source goods from a Layer 2 factory, but the factory itself may lack any digital presence.
A Layer 4 fintech application may offer microloans to Layer 1 street vendors using behavioral AI, yet without recognizing the vendor's actual market conditions or social capital.
QRIS adoption by a traditional vendor doesn't imply digital market integration---it may serve only as a payment tool, not a shift in business model.
These parallel flows of value, goods, and information signal that Indonesia's economy is not converging into a single digital economy, but expanding outward into multiple concurrent economies.
